implementing kaizen philosophy within hidroelectrica

Author: Ionela Stancu - Project Manager Crowne Plaza Hotel, Bucharest, November 21, 2011

Implementing Kaizen Philosophy Within

Hidroelectrica

…Making Good Companies Great ...

The Conference is organized by KAIZEN Institute ® Romania, together with KAIZEN Institute ® Global, adicted to Kaizen Management ®/ Lean Management – Continuos Improvement Management.

• The Proiect is financed from Sectorial Operational Program Developing of Human Resources 2007-2013: Invest in people !

• State help scheme for general and specific proffesional training “Money for Professional Training !”

• Priority axis 3 “Rising the ability of workers and enterprises”

• Major intervention domain 3.2 “Training and support for enterprises and employee for promoting adaptability”

• ID number of the contract: POSDRU/77/3.2/A/61491

• Beneficiary: S.C. HIDROELECTRICA S.A.

• Project duration : 21 Months • Project budget: Hidroelectrica SA contribution 40,95% 600.000 lei Grant Financial assistance 59,05% 865.000 lei

PROJECT TITLE : “FORMAREA ŞI PERFECŢIONAREA PERSONALULUI SOCIETĂŢII, ÎN CONFORMITATE CU STRATEGIA DE DEZVOLTARE A RESURSELOR UMANE, BAZATĂ PE PRINCIPIILE ÎMBUNĂTĂŢIRII CONTINUE A ÎNTREGII ACTIVITĂŢI, ÎN SCOPUL CREŞTERII CAPACITĂŢII DE ADAPTARE A SOCIETĂŢII LA MEDIUL ECONOMIC ÎN SCHIMBARE”.

Project goal

• The Project promotes a gradual change of mentality in the organization by introducing the KAIZEN concept, the continuous improvement of process efficiency in organization ;

• Certifying a number of specialists within the organization for continuing the training in process improvement after finalizing the project as well project sustainability;

• The training of 17% of the employees for a continuous improvement of their activities, and the processes (30.04.2012).

We’ve begun to build the project’s culture…..

CONTINUOUS IMPROVEMENT: A STORY FROM THE TIME OF ESOP THE IMAGE BELONGS TO “KAIZEN: THE KEY TO JAPAN’S COMPETITIVE SUCCES, BY

MASAAKI IMAI (MCGRAW HILL, 1986)

CONTINUOUS IMPROVEMENT, in small steps

INNOVATION, a major change, with fast

improvement

Climbing

step by

step on a

steep slope

Jump

over a

step

The activities of the project

• 1. Project management

• 2. Public aquisitions

• 3. Selection of the target group

• 4. Training of the target group

• 5. Strategy and work procedures development for implementing the continuous improvement philosophy in the entire organization PROJECT SUSTAINABILITY

• 6.Dissemination of the results

• 7. Promotion and project visibility

7

• Opening Project Conference • SELECTION • TRAINING:

– Employees Awareness in subsidiaries through organizing an awareness course (120 employees, the courses were organized in 4 subsidiaries)

– Course for process improvement specialists (45 employees) – Course for process improvement managers (15 employees)

The strategy for the dissemination of the Kaizen philosophy in the company

Completed implementation stages

The strategy’s expected results

Dissemination and continuous sustainability of the project for

training of our own employees in the next three years:

• Until 30.04.2012: 17% of employees;



• Until 31.12.2014: up to 90 % of employees.

I. EMPLOYEE

TRAINING

II.COST AND

STOCKS

REDUCTIONS

1.1 AWARENESS through practical and theoretical training

1.2 TRAINING THE NEW KAIZEN TRAINERS

Stock reduction

Development of 5S sites

Development of TPM sites

Flow optimization A minimum of 3 flows

A minimum

of 5 sites

5S/ SH

4 sites/ SH

Kanban for supplies

STRATEGY - in development together with KAIZEN Institute Romania ….

until 31.12.2012

17% until 30.04.2012

90% until 31.12.2014

The project’s results

• The annual minimum numbers of suggestions for process improvement = 2 /employee

• The number of suggestions thet can be implemented from the total of suggestions received from the employees =a minimum of 5%/ year

• 2% from the estimated annual increase for work efficiency in physical units for the total medium employees will represent the effect of implementing the process improvement strategy.

This is how it started……. Opening Conference, 16.11.2010

The portrait of the kaizen manager: Strong points= talent+ (abilities + knowledge)

• Performance oriented

• Willing to learn and to teach others

• With respect for work and profession

• Good team work abilities

• Creative

• Tenacious

• Responsible

• Ambitious

• An empathic person

• Modest

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Selection of the target group

• The selection procedure developed with the KAIZEN Institute Romania …

How? in cascade

• 120 employees awareness trained in the KAIZEN Basics 45 process improvement specialists

15 kaizen managers.

SELECTION STAGES

Selecting the employees for the Awareness Program

Selecting the employees for the Managers Training Program

Selecting the employees for the Specialists Training Program

Selecting the employees for the Dissemination Program (900)

Criteria for the selection of the 120 employees group that were trained in the KAIZEN philosophy

• Results obtained by the employees at the annual individual performance assessment;

• Results obtained following the occupation interest questionnaire applied by the company’s psychologists;

• Territorial dispersion (implication of all subsidiaries).

700 EMPLOYEES from those with superior studies applied ( about 40%) !!!!

Criteria for the selection of the 45 specialists process improvement group from the employees that were

trained in the KAIZEN philosophy

• Results obtained in the awareness program (theory and involvement in the 5S sites);

• Supplementary: territorial criteria (maximum 6-minimum 2 employees qualified as process improvement specialists/ subsidiary depending on its size) ….

Criteria for the selection of the 15 kaizen managers group among the certified process improvement

specialists

• Results obtained within the process improvement specialists program (35% theory and 35% KAIZEN practice);

• Future KAIZEN managers Leadership Potential (30%) evaluation performed with an instrument developed by the GALLUP company for HIDROELECTRICA SA.

• Supplementary: employee desire, territorial criteria

(minimum 1 manager / subsidiary ) ….

Portile de Fier

Hateg

Tg . Jiu

Rm. Valcea

Curtea de Arges

Buzau

Bistrita

Caransebes

Cluj

Sebes

Bucuresti

Slatina

Sibiu

Portile de Fier

Hateg

Tg Jiu Rm

Valcea

Curtea de Arges Buzau

Bistrita Oradea Cluj

Sebes

Bucuresti

Slatina

Sibiu

Caransebes

TRAINING (phase 1) : Awareness Courses Where are we training the employees in KAIZEN awareness?

....at BISTRIȚA, PORȚILE DE FIER, ARGEȘ and VÎLCEA

The subsidiaries where we

implemented the awareness program

Bistrita Hydroelectric Subsidiary, Stejaru HPP

Portile de Fier Hydroelectric Subsidiary, Porțile de Fier 1 HPP

Curtea de Arges Hydroelectric Subsidiary, Vidraru Dam

Ramnicu Vilcea Hydroelectric Subsidiary, Lotru – Ciunget HPP

First stage of training: AWARENESS COURSES IN THE FOUR SUBSIDIARIES :

Ramnicu Vilcea Curtea de Argeș –Multifunctional Hall

Portile de Fier Bistrita- Piatra Neamt

“5S” Site Organization in subsidiaries

Ramnicu Vilcea – Office Turnu HPP Curtea de Arges – Administrative office Vidraru HPP

Portile de Fier - Warehouse Piatra Neamt – Plant dispatcher

The teams worked efficiently !

Curtea de Arges – Administrative Office Vidraru HPP

Piatra Neamt - Warehouse

Ramnicu Vilcea – Engine Hall Turnu HPP – rack tidying

Porțile de Fier - Warehouse

We found and solved the problems ...

56

88

142

286

52

84

132

268

0

50

100

150

200

250

300

350

S1 S2 S3 TOTAL

probleme

identificate

probleme

rezolvate

Numar de probleme rezolvate/ Numar probleme identificate = 93.71 %

sortare ordonare stralucire

Ramnicu Vilcea Curtea de Arges

Portile de Fier Piatra Neamt

Number of problems solved/ Number of problems identified = 93.71 %

Number of problems solved/ Number of problems identified = 98.03 % Number of problems solved/ Number of problems identified = 95.97 %

Number of problems solved/ Number of problems identified = 93.36 %

problems

identified

problems

solved

problems

identified

problems

solved

problems

identified

problems

solved

problems

identified

problems

solved

problems

identified

problems

solved

Sorting Tidying Cleanliness




The power of visual management ….

Ramnicu Vilcea – Warehouse Turnu HPP

Curtea de Arges – Engine Hall Vidraru HPP

Piatra Neamt – Dispatcher Room Portile de Fier - Office

Second stage of training: Process Improvement Specialists Course

Lecturer KAIZEN Ing. Marian Dumitru

Lecturer KAIZEN Ing. Dan Stavăr

Period : February – July 2011, 152 hours/

(72 theory + 80 practice)

– Module 1 –Kaizen Basics

– Module 2 – Total Productive Maintenance Basics

– Module 3 – Total Flow Management Basics

– Module 4 – Total Quality Management Basics

– Module 5 – Total Services Management Basics

Process Improvement Specialists Course

1- 12 August 2011: Visits in sites from the Kaizen lecturers & Project management team in the 13 Hidroelectrica’s subsidiaries

1. Caransebes HS 2. Portile de Fier HS

3. Slatina HS 4. Buzau HS

5.Oradea HS

7. Cluj HS

6. Sebes HS

8. Sibiu HS


10. Hateg HS 9. Bistrita HS

12. Slatina HS 11. Ramnicu Vilcea HS


13. Targu Jiu HS

The Visits from the Kaizen teams in the subsidiaries (gemba) had as purpose,

monitoring the implementation of knowledge obtained through applying

the Kaizen philosophy and practice in Hidroelectrica’s subsidiaries.

The necessary corrections were performed for the efficient development of

activities.


Third stage of training: Process Improvement Managers Course …

Period : September – November 2011,

144 hours/(78 theory + 66 practice)

– Module 1 – Kaizen Coach

– Module 2 – Kaizen Toolbox

– Module 3 – Total Flow Management Basics –

Advanced

– Module 4 – Kaizen Managers

– Module 5 – Kaizen Leadership

Process Improvement Managers Course

• DISCUTIONS FORUM and Kaizen information exchange on

the internet.

• COMPANY’S INTRANET –The development stages of the project were posted on Hidroelectrica’s intranet;

• Posting on Hidroelectrica’s website of the press releases concerning the stage of the project;

• Publishing in Hidroelectrica’s 2010 ANNUAL Report of an

article about the project.

Project visibility …..

Step by step…. A race we began with 120 employees, we’ll continue it with

17% of the employees until 2012 and in a few years, all of the company’s employees will enter the race ….

38

HIDROELECTRICA SA 3 Constantin Nacu St., Bucharest

www.hidroelectrica.ro

Thank you for your attention!

implementing kaizen philosophy within hidroelectrica

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